MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News for January 26th:

Updated at 5:00 PM ET 

HEADLINES:

— Dallas Fed: Texas Mfg Up in Jan Despite Higher Costs

— Baker Hughes Q4 Net Income Drops 26% on Oilfield Revenues

NEWS:

Dallas Fed: Texas Mfg Up in Jan Despite Higher Costs

Texas factory activity rebounded sharply in January following December’s contraction, with current-month production and new orders signaling an above-average pace of expansion despite higher costs, the Dallas Federal Reserve said Monday (1/27).

Industry representatives, however, express skepticism about the sustainability of the growth reported in the latest Texas Manufacturing Outlook Survey, citing geopolitical uncertainty and rising labor costs.

The Texas factory production index, a primary gauge of state manufacturing health, surged 14 points to 11.2 in January, recovering from the December reading of -3.0.

The new orders index jumped 18 points to 11.8, while the capacity utilization index climbed 12 points to reach 7.1 during the period.

The employment index rose 10 points to 8.2, marking a return to headcount growth, though the hours worked index remained nearly flat at 0.7 for the month.

The general business activity index improved 10 points to -1.2, suggesting that broader business conditions stabilized near zero in January.

The future production index remained optimistic with a reading of 29.2, while the future general business activity index rose six points to 16.6.

The survey’s respondents said they were navigating a volatile economic landscape as global conflicts have created widespread unease.

Chemical and furniture makers noted that while falling interest rates offer some hope, significant uncertainty persists within the automotive, construction, and commercial office building markets.

“On top of previous challenges, some customers have gone out of business,” said a food manufacturing representative. “Others are struggling with cash flow and are demanding or taking longer terms to pay their orders. This has strained our cash flow.”

Baker Hughes Q4 Net Income Drops 26% on Oilfield Revenues

Baker Hughes Co. reported that a record surge in industrial and energy technology orders failed to offset a year-on-year decline in oilfield services revenue.

Net income for the final quarter of 2025 dropped 26% to $876 million from $1.18 billion a year earlier, the company announced in financial results released Sunday (1/26).

The firm attributed the results to a production-oriented business shift as macro-driven softness continues to weigh on the North American oilfield services and equipment (OFSE) segment.

Revenue for the OFSE segment fell to $3.57 billion from $3.87 billion, reflecting a broader industry slowdown in domestic drilling and well completion activity through late 2025.

However, the company secured a record $32.4 billion backlog in its industrial and energy technology (IET) unit, driven by massive international demand for offshore and LNG infrastructure.

New IET orders hit $4 billion during the quarter, including major contracts for liquefaction equipment in the U.S. and gas separation projects in Kazakhstan, Baker Hughes said.

CEO Lorenzo Simonelli stated that the company’s evolution toward a lifecycle-oriented portfolio is reducing its reliance on the cyclical nature of traditional oil and gas drilling.

Baker Hughes expects this shift toward long-cycle gas projects and offshore production solutions to drive earnings growth through 2026 despite flat expectations for the domestic services market.